April 21st Incident Report: Venus BUSD Vault Issue
As many of you are probably already aware, Venus made some major alterations to its protocol that affected most projects integrated with them, including many of the largest protocols on BSC such as Autofarm ( link to https://medium.com/autofarm-network/21-april-2021-venus-vaults-post-mortem-1518ae7399c6 ), Belt( link to https://medium.com/belt-finance/belt-finance-april-21-incident-report-venus-issue-2fe82f6e0c69 ), and many others. In our case, although we only had one BUSD vault connected to them, we also couldn’t entirely avoid complications. However, there is nothing to worry about as all stakers in the vault will receive 100% of their deposited funds. The details are below.
What happened with Venus
On April 21st, 2021, Venus implemented the VIP-12 proposal in which they introduced VAI liquidation, a VAI mint fee, and a redemption fee increase to 0.01% of vTokens. The major issue within this proposal is their fee on the redemption process. As a result of this, 0.01% of each user’s deposited amount was transferred when a withdrawal took place. If you’re interested in reading more details on the play-by-play of what transpired, we recommend referencing Autofarm’s article here( link to https://medium.com/autofarm-network/21-april-2021-venus-vaults-post-mortem-1518ae7399c6 )
As for how this affected us, the BUSD Venus vault on https://app.wault.finance/#vaults suffered this fee, and the withdrawal of BUSD was halted as we uncovered the issue and withdrew the BUSD from Venus. This matter only affected this single vault though. Every other vault and pool in our ecosystem has and continues to function without issue.
What Wault will do
The losses from this fee were sent to the Venus treasury and we are in talks with them to cover these losses. However, we won’t wait for their response. Regardless of what happens with them in terms of recovery, we at Wault believe in the sanctity of user funds, so all depositors will soon receive 100% of their BUSD back.
Even though there was little we could’ve done about this issue since it seems few if any BSC protocols were aware of Venus’ change in advance, we will use our team funds to reimburse any and all lost funds resulting from this .01% withdrawal fee.
We made a snapshot of everyone’s exact deposits and all users will be receiving their BUSD in an airdrop at 4 PM UTC on Sunday, April 25th, 2021.
Here is the list of wallets and amounts they will receive: https://docs.google.com/spreadsheets/d/1OcB9hyrYYXDveuLG0R6p8kIX3dER7kQ9UKJwuYw1FGU/edit#gid=0
Keep in mind this is limited to the deposited funds. There was about $10K BUSD taken by Venus from unclaimed profits that isn’t included here. We’re discussing the reclamation of this amount with Venus.
Besides that, we have inactivated the Venus strategy on our BUSD vault. This vault will remain inactive as we code a new strategy for it. We will also look to join a BSC Alliance of projects to improve communication and avoid any similar issues in the future. The Binance Chain team has created a BSC Ecosystem Partner Telegram Channel which will serve this purpose.
Moving forward
In summary, we’re going to quickly put this behind us because this is only a trivial matter, both in terms of the total funds affected relative to our much larger TVL, but also in comparison to the initiatives we have planned in the coming several weeks. This includes a migration to a new token WAULTX, a launch of our new AMM WSwap, an airdrop and listing of our AMM’s token WEX, and our next presale which we will release news of very very soon. Keep your eyes peeled.
What is Wault Finance?
Wault Finance is a decentralized finance hub that plans to connect all the primary DeFi use-cases within one simple ecosystem on Binance Smart Chain. We believe the benefits of DeFi should be accessible to the masses but in an intuitive way; avoiding the expensive fees, confusing interfaces, and centralized decision-making of many current platforms. So with these goals in mind, we’ve built a protocol with some unique features we believe will amplify the power of wealth-accumulation for our users.
In addition, we believe in open and decentralized governance. That’s why WAULT token holders will be able to vote on and decide all aspects of the protocol’s future development path. Every developer is also welcome to work on and contribute to our open-source code. Come join the movement and help us advance DeFi on the Binance Smart Chain!
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Website: https://wault.finance/
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